4 Top Stock Trades for Tuesday: LLY, GME, F, UPWK

top stock trades - 4 Top Stock Trades for Tuesday: LLY, GME, F, UPWK

It’s options expiration week, so it’s no surprise we’re seeing a bit of a selloff in equity markets. That said, let’s see if we firm up going into mid-week and look at some top stock trades in the meantime. 

Top Stock Trades for Tomorrow No. 1: Eli Lilly (LLY)

top stock trades for LLY
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Source: Chart courtesy of TrendSpider

The rest of the market may have been under pressure, but not Eli Lilly (NYSE:LLY). Shares are up nearly 12% on the day following positive data from an Alzheimer’s trial.

How do we proceed from here, though?

I love Eli Lilly the company, but I don’t love the stock’s big wick here. Especially as shares ran right into the several key marks, those being the 161.8% and 261.8% extensions from various ranges.

From here, I really want to see the stock hold $178.50. To lose this mark puts the stock below Monday’s low, as well as below the two-times range extension. Could that put a retest of the December highs in play?

The short answer is yes.

Over $200, and Monday’s high puts the two-times range extension (from the November to July range) in play near $212.

Top Stock Trades for Tomorrow No. 2: GameStop (GME)

top stock trades for GME
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Source: Chart courtesy of TrendSpider

GameStop (NYSE:GME) struggled with its 200-week moving average in October. After pulling back from this mark, the 10-week moving average stepped in as support as the stock eventually powered through the 200-week.

Since then, it’s been volatile. However, the 10-week moving average to act as its guide. Now bouncing hard, let’s see if shares can push through $22.35, the high from last month.

Above puts $25 to $25.65 in play. That’s the 200-month moving average and a prior key support level from several years ago.

On the downside, however, look for opportunity near $17.50 and the 10-week moving average.

Top Stock Trades for Tomorrow No. 3: Ford (F)

top stock trades for F
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Source: Chart courtesy of TrendSpider

There has been lovely price action in the automakers. First General Motors (NYSE:GM) gave us a tradable setup, now Ford (NYSE:F) did too.

The stock bounced off its 10-week moving average last week, before going weekly-up on Monday by clearing last week’s high.

However, this one is not the easiest setup, with the 200-week moving average and last month’s highs not far off. If Ford can clear $9.50, it could put $10-plus in play.

On the downside, though, a move below the 10-week moving average is discouraging, but a close below last week’s low could kickstart a larger decline.

Top Trades for Tomorrow No. 4: Upwork (UPWK)

top stock trades for UPWK
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Source: Chart courtesy of TrendSpider

Perhaps my favorite on this list, Upwork (NASDAQ:UPWK) is trading really well here. I flagged this on Sunday evening, because the setup was simply worth watching.

As I mentioned at the top, the morning started off with selling pressure and that included Upwork. However, the stock bounced hard off the 10-week moving average, just as it did last Monday and Tuesday.

This time the bounce was even stronger, sending shares back up to the two-times daily-up rotation. If it can clear $38.26, then we could see a quick move over $40. That would put the December high in play at $41.41.

A close below the 21-day moving average would be disappointing and take some wind out of the bulls’ sails.

On the date of publication, Bret Kenwell held a long position in UPWK.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.

Article printed from InvestorPlace Media, https://investorplace.com/2021/01/4-top-stock-trades-for-tuesday-lly-gme-f-upwk/.

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